Published: February 2026
Reading time: 5 min.
For years, Europe’s crypto economy ran on an uncomfortable truth: a large part of its payment infrastructure existed in a regulatory grey zone.
With the full enforcement of the EU’s Markets in Crypto-Assets Regulation (MiCA), that grey zone is disappearing — fast. And the consequences are far more dramatic than many in the industry expected.
The utPay Shutdown Was Not an Isolated Incident
When the crypto payment gateway utPay abruptly shut down its crypto services, many framed it as a single company failing to adapt.
That interpretation misses the point.
utPay’s exit marks the beginning of a structural collapse of Europe’s crypto payment layer — not a one-off enforcement action.
The reason is simple: MiCA does not allow transitional ambiguity. If you provide crypto payment services without authorization, you are out.
The Numbers Tell the Real Story
According to industry research and regulatory filings, Lithuania had around 170 registered crypto service providers before MiCA enforcement entered its decisive phase.
Here is the critical number:
Only around 25 of them have actually applied for a MiCA license.
That gap is not administrative noise. It is an extinction event.
The majority of crypto payment providers either:
- cannot meet capital and compliance requirements
- cannot secure banking relationships
- cannot survive the legal accountability MiCA imposes
For them, licensing is not delayed. It is impossible.
Why Crypto Payments Are Being Hit Harder Than Exchanges
Exchanges get the headlines.
Payment providers carry the real operational risk.
They sit between:
- crypto wallets
- merchants
- banks
- high-risk industries
MiCA treats this position with zero tolerance for ambiguity. “Technical service provider” narratives no longer work. If value moves through your infrastructure, you are regulated.
The Silent Casualty: Online Casinos and Gambling Platforms
One sector feels this collapse immediately: online gambling.
For years, crypto payment gateways enabled casinos to:
- accept deposits without traditional banks
- serve cross-border players
- avoid card network friction
- operate at the edge of multiple jurisdictions
Many gambling platforms built their entire payment logic around crypto gateways that are now disappearing.
MiCA does not target online casinos directly. But by removing their crypto payment rails, it effectively cuts their oxygen supply.
The result:
- frozen deposits
- forced migration to fewer providers
- higher fees
- greater exposure to banking scrutiny
What looks like a compliance measure becomes a marke
